European Crisis

European Crisis

Introduction

During the years of 2008-2009developed countries and developing countries were under the impact of economic and financial crisis. During the last quarter of 2008, there was a decline of 20% as high income and 23% and 15% in developing countries in the global industrial production. It was estimated by the World Bank that developing countries would encounter a financing break of approximately $270-$700 billion, which also is dependent on the rigorousness of the financial and economic crisis, along with the timing and the strength of the policy formulated in response. Fear existed that the debt issuance by countries of high income would throng off numerous countries that are developing. The basic challenge encountered by most of the developing countries was to find ways of protecting and expanding essential expenditures on infrastructures, development of human and social safety nets.

The concerns were giving away the optimism for ending of the prevalence of crisis and initiating the process of recover, by the late 2010. Expert organizations like the IMF (International Monetary Fund) and the WB (World Bank) were forecasting the end of the phase of crisis and phase to recover on its way. The April 2011 World Economic Outlook, which is the flagship report of the IMF on the status of the economy of the world, which starts by saying that the economic recovery of the world will continue as it was predicted or more likely less than it; however, the prior double-dip recession fears recently have not appeared (International Monetary Fund, 2010).

The Global Economic Prospects of the World Bank June 2011 highlighted that in developing countries global financial crisis are no longers the forces of dictatorship. There are many developing countries that are in the phase of gaining or have gained the activity levels at full capacity… Global growth is anticipated to stay firm from 2011 to 2013” (World Bank, 2011).

The long time has not passed and the world today is the fear of collapse of the Eurozone and an endemic depression. Just the time when the economy of the world was entering t=into the phase of recover, just then the crisis of the Euro has passed the obscurity once again.

This has imperative implications for the world that is developing. The time when the prior crisis made it complicated to safeguard the economic development process developing countries, must the present Europe and debt crisis formulated into a global financial adversity, the present circumstances, however, can also lead to reverse the progresses and development made during the period of prior decades. However, it is the time when developing countries initiate the process of planning of strategies of development that reduces the jeopardy of the affliction of countries from the financial crisis in the countries of high income. The OIC member country mix, having several of the richest countries of the world as the member states provide them with a remarkable inimitable opportunity and position in the context of formulating funds for emergency development amongst the member states providing least opportune ...